SRS Labs Completes Restructuring with Sale of Semiconductor Subsidiary to Noblehigh
September 29 2006 - 8:30AM
Business Wire
SRS Labs, Inc. (NASDAQ:SRSL), a leading provider of surround sound,
audio and voice technologies, today announced it has completed
restructuring its business by finalizing the sale of its
semiconductor subsidiary, Valence Technology Limited (�Valence�),
to Noblehigh Enterprises Inc. (�Noblehigh�). The $4.3 million
transaction is the final transition step allowing SRS Labs to move
forward with its core licensing business model. Along with the sale
of Coming Home Studios (�CHS�) announced in July, SRS Labs is now
better positioned to aggressively expand its market presence with
software partners and original equipment manufacturing (OEM)
customers across core market segments. The Company expects to
recognize a gain from the sale of Valence in the Company�s third
quarter financial statements. �I am pleased with the completion of
the sale of the Valence semiconductor business. This is an
important milestone for SRS Labs and I believe that this
transaction enables�our former staff at Valence to have a more
suitable situation to develop their business,� said Thomas C.K.
Yuen, chairman and CEO of SRS Labs, Inc. �More importantly, now
that the restructuring is complete, SRS Labs can move forward with
a clear strategy and focus our expertise on the audio technologies
business, which is experiencing record growth and represents the
greatest sales opportunity for SRS.� About SRS Labs, Inc. SRS Labs
develops advanced audio and communications technology that
optimizes and improves the listening experience through techniques
based on the latest research into the human auditory system. With
over 600 million products shipped worldwide, SRS Labs is a leader
in audio. Incorporated in products ranging from HDTVs and mobile
phones to PCs and automotive entertainment, SRS Labs audio and
speech signal processing provides the best possible sound on every
form factor and in every environment. SRS Labs surround sound
solutions enable the professional broadcast and recording
industries with high-performance production, back-haul, storage,
and transmission capability. SRS Labs supports manufacturers
worldwide with offices in the US, China, Japan, Taiwan, Europe and
Korea. Except for historical information contained in this release,
statements in this release, including those by Mr. Yuen may
constitute forward-looking statements regarding our assumptions,
projections, expectations, targets, intentions or beliefs about
future events that are based on management's belief, as well as
assumptions made by, and information currently available to,
management. While the Company believes that its expectations are
based upon reasonable assumptions, there can be no assurances that
the Company's goals and strategy will be realized. Numerous
factors, including risks and uncertainties, may affect the
Company's actual results and may cause results to differ materially
from those expressed in forward-looking statements made by or on
behalf of the Company. Some of these factors include the acceptance
of new SRS Labs� products and technologies, the impact of
competitive products and pricing, the timely development and
release of technologies by the Company, general business and
economic conditions, especially in Asia, and other factors detailed
in the Company's Form 10-K and other periodic reports filed with
the SEC. SRS Labs specifically disclaims any obligation to update
or revise any forward-looking statement whether as a result of new
information, future developments or otherwise. SRS Labs, Inc.
(NASDAQ:SRSL), a leading provider of surround sound, audio and
voice technologies, today announced it has completed restructuring
its business by finalizing the sale of its semiconductor
subsidiary, Valence Technology Limited ("Valence"), to Noblehigh
Enterprises Inc. ("Noblehigh"). The $4.3 million transaction is the
final transition step allowing SRS Labs to move forward with its
core licensing business model. Along with the sale of Coming Home
Studios ("CHS") announced in July, SRS Labs is now better
positioned to aggressively expand its market presence with software
partners and original equipment manufacturing (OEM) customers
across core market segments. The Company expects to recognize a
gain from the sale of Valence in the Company's third quarter
financial statements. "I am pleased with the completion of the sale
of the Valence semiconductor business. This is an important
milestone for SRS Labs and I believe that this transaction enables
our former staff at Valence to have a more suitable situation to
develop their business," said Thomas C.K. Yuen, chairman and CEO of
SRS Labs, Inc. "More importantly, now that the restructuring is
complete, SRS Labs can move forward with a clear strategy and focus
our expertise on the audio technologies business, which is
experiencing record growth and represents the greatest sales
opportunity for SRS." About SRS Labs, Inc. SRS Labs develops
advanced audio and communications technology that optimizes and
improves the listening experience through techniques based on the
latest research into the human auditory system. With over 600
million products shipped worldwide, SRS Labs is a leader in audio.
Incorporated in products ranging from HDTVs and mobile phones to
PCs and automotive entertainment, SRS Labs audio and speech signal
processing provides the best possible sound on every form factor
and in every environment. SRS Labs surround sound solutions enable
the professional broadcast and recording industries with
high-performance production, back-haul, storage, and transmission
capability. SRS Labs supports manufacturers worldwide with offices
in the US, China, Japan, Taiwan, Europe and Korea. Except for
historical information contained in this release, statements in
this release, including those by Mr. Yuen may constitute
forward-looking statements regarding our assumptions, projections,
expectations, targets, intentions or beliefs about future events
that are based on management's belief, as well as assumptions made
by, and information currently available to, management. While the
Company believes that its expectations are based upon reasonable
assumptions, there can be no assurances that the Company's goals
and strategy will be realized. Numerous factors, including risks
and uncertainties, may affect the Company's actual results and may
cause results to differ materially from those expressed in
forward-looking statements made by or on behalf of the Company.
Some of these factors include the acceptance of new SRS Labs'
products and technologies, the impact of competitive products and
pricing, the timely development and release of technologies by the
Company, general business and economic conditions, especially in
Asia, and other factors detailed in the Company's Form 10-K and
other periodic reports filed with the SEC. SRS Labs specifically
disclaims any obligation to update or revise any forward-looking
statement whether as a result of new information, future
developments or otherwise.
Srs Labs (NASDAQ:SRSL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Srs Labs (NASDAQ:SRSL)
Historical Stock Chart
From Jul 2023 to Jul 2024